Salman, Shah Rukh star in 'Zero' teaser on Eid

New Delhi, Jun 9: Multiplex operator PVR on Monday said it has cut salary across various levels, laid off employees and deferred increments during the lockdown to mitigate adverse impact of COVID-19 on the business.

The company said at present it is not generating any revenue from exhibition business and related activities as cinemas across the country are shut following the directions from the regulatory authorities.

According to the company, closure of screens during the lockdown will have a significant negative impact on profitability and liquidity.

PVR has taken measures to reduce its personnel cost, including salary cuts across various levels in the organisation during the lockdown along with "reduction in headcount by way of layoffs/retrenchment" to mitigate the adverse impact of COVID-19 on the business.

Moreover, the board of the company, in its meeting held on Monday has also approved plan to raise Rs 300 crore through rights issue.

"Since Cinema Exhibition is the only business segment, company is currently not generating any revenue from admissions, food and beverage sales or other revenue and cash flow from operations," said PVR in an update.

Beginning from March 11, PVR started closing its screens in accordance with the order passed by various regulatory authorities and within a few days most of our cinemas across the country were shut down, it added.

The company will continue to incur committed cash outflows, including employee salary pay-outs, other overheads as well as payments for older working capital.

"This has and will have a significant negative impact on profitability and liquidity during lockdown and even thereafter till business comes to normalcy," it added.

Further, once the cinemas are re-opened, we may not be able to run our cinemas at normal capacity utilisation levels on account of social distancing measures that cinemas may be required to follow as well as health concerns that the patrons may have, the multiplex operator said.

"On account of this, our revenue and cash flow generation may be impeded even once we are allowed to restart operations," it added.

The company has also deferred decision on on increments to reduce its cost, it added.

PVR has also written to developers for waiving rental and CAM (Common Area Maintenance) charges for the lockdown period.

It is in discussion with developers for reducing rentals post re-opening and has invoked force majeure clause in its agreements with them.

Besides, the company has raised additional borrowings from existing bankers to shore up liquidity.

"As of March 31, 2020 the company had cash and bank balance of Rs 316 crore. As on June 7, 2020 cash and bank balance is Rs 227 crore (including undrawn bank lines)," it added.

Over reopening of theatres, PVR said that the government has come out with a phase-wise schedule.

In these guidelines cinema halls have been kept in the third phase of re-opening, where dates will be decided based on assessment of the situation.

"We are in continuous engagement with all regulatory authorities and hope to receive the necessary permissions for restarting opening in the near future," it added.

Currently PVR operates 845 screens in 176 properties in 71 cities.

Indore, Jan 14: Yoga guru Ramdev has said that Deepika Padukone should hire persons like him for offering correct advice, days after the actress had visited Jawaharlal Nehru University in Delhi following the violence at the campus earlier this month.

"Deepika Padukone needs to study about political, social and cultural issues. She should understand more about our country. Only after gaining knowledge, she should take decisions. I feel she should have persons like Swami Ramdev for correct advice," Ramdev said at an event here on Monday.

On January 7, Padukone joined the protest at JNU after a masked mob entered the varsity campus and attacked the students and teachers with sticks and rods on January 5.

Several BJP leaders questioned the support extended by Padukone. On the other hand, the Congress threw their weight behind the actress for her stand.

Washington D.C, Jul 8: Adding another feather to her cap, actor Priyanka Chopra on Wednesday announced that she has been chosen as the ambassador of the Toronto International Film Festival (TIFF) 2020.

Priyanka has joined the list of 50 celebrated filmmakers and actors who are invited as the ambassadors of the TIFF.

The 37-year-old star put out a post on Instagram and shared a montage featuring snippets of her empowering addresses at the TIFF. Along with the video, Priyanka noted that the TIFF has been a second home for her.

She wrote, "Throughout my career TIFF has been a second home for me, with many of my films, as both an actor and producer, making their world debut at the festival."

Talking about the film festival that focuses on special stories and storytellers, the 'Dostana' star added, "TIFF has always been at the forefront of supporting and championing global content that showcases diversity and inclusion, a charge led by my friend @cameronpbailey and his talented team, who work with passion to shine a spotlight on these special stories and storytellers."

"Even more than that, one of the most exceptional parts of the festival are the fans of cinema who congregate to celebrate the magic of the movies, and who have always embraced me with so much warmth and love," Priyanka added.

She shared that she feels proud to serve as the ambassador to the festival and noted," I am very proud to serve as an ambassador this year, and I look forward to continuing a relationship that I value tremendously."

The esteemed film festival will be opting for digital screenings and virtual red carpets in the wake of the coronavirus pandemic. The festival is scheduled to kick off from September 10 to September 19, 2020.